Thinking out loud--MBNA Award enigma

[Bruin Steve]

Yeah...I know it's a Royal Caribbean Card Question...but I know you guys are smart and might have some ideas too:

 

The RCCL MBNA Card...Okay...So the 125,000 point award level says:

>>125,000 Free 5 or 7-night Mexican Riviera or Caribbean sailing for 2 (outside stateroom) <<

 

Now, when you go deeper into the site, you find a page with more detailed restrictions, including:

>>125,000 Royal Points • Free 5 or 7 Night Caribbean or Mexican Riviera sailing stateroom for 2 (outside only). Value of free cruise fare for 2 may not exceed twenty-five hundred dollars ($2,500).<<

 

So, it's really not so much a "Free Cruise" (unless it's under $1250 per person) as much as it's really $2,500 OFF...

 

So...Why the big restriction on having to be a Mexican Riviera or Caribbean Cruise? I mean...let's say I'd rather go to Alaska for a long cruisetour and stay in a suite...and my cruise price might be $8,000 per person...Why not just give me the $2,500 off the $16,000 total? Seems like RCCL would stant to make a lot more off that???

 

Or...What I'd probably rather do...Book a 14 night Southampton Round Trip for July 2007 on the Navigator of the Seas...That wopuld otherwise run me around $3,000 per person...and I'd likely buy my airfare and a couple of nights pre-cruise hotels through RCCL...and a lot of more expensive shore excursions...and I'll be on the ship for 14 nights gambling and drinking and buying souvenirs...

 

And it will still only cost them the same $2,500 off...

So, I'll rack up about a $10-12,000 bill with Royal Caribbean...of which I'd pay them $7,500 to $9,500...

 

If I just cash out a "Free Cruise" in Mexico or the Caribbean, I'll likely find a cruise that holds fairly close to the $2,500 credit amount...I won't buy their airfare...I'll only be on the ship drinking and gambling 7 nights...They'll make minimal money off me...

 

There is no great advantage to them...They pass up on EXACTLY $2,500 either way...I only travel "high season", so, no doubt they can fill the room on either cruise with or without me...so that money is the same to them (and theoretically, they've already taken it in on their end of the card deal).

 

As a minimum, you just have to ask "why the restriction?" It's a $2,500 credit EITHER WAY--NOT a "Free Cruise"...It's about a 25-30% discount on an expensive cruise versus a 100% discount on a cheap cruise...

 

And, you know what? I'm a Crown and Anchor "Diamond" Member as well as a Celebrity Captains Club "Elite" Member...Plus I carry and use their credit card...Wouldn't you think they'd want to keep ME happy?

 

Anyone understand the logic behind this program?

[SheilaNC]

Bruin Steve,

As always you're right on target. I think I've decided that, unless you can get them to see it your way, I'll determine in advance what I think my shipboard expenses will be and cash in for that amount pre-cruise. So, at minimum, I'll know most of my total expenses with more precision before we start out and have fewer surprises at the end. Please feel free to punch holes in this notion. :)

[darrencantwait]

Hey Steve --

 

Saw your question on the RCCL board too. The X card is a little different. We actually get up to 10 day cruise...and I tried to find the small print limiting it to $2500 on the X card and don't see the limitation.

 

The way I see it, MBNA doesn't give you $2500 off because they're banking that your free cruise for two will be less than that. If you cash your points in for $$$ toward a cruise, at 125,000 points, it looks like you would only get $1250 credit. If cruise mark-up is similar to retail (220%), RCCL gets off cheaper with the free cruise give-away, and the consumer gains (getting a $2500 value cruise as opposed to $1250 credit). Kind of win/win.

 

not sure if my math is all right...but that's kinda how I see it. Though, I'm all for you fighting and getting us a $2500 credit for 125,000 points! ;)

[cruisePRN]

The RCL card is a bad deal all the way around. I had such a hassle trying to cash in for a 3 night Bahamas cruise I cancelled the card on the spot. I opened an MBNA card with 1% cash back and can use it for anything. It gives double points for all vacation and dining so I rack up more points anyway. I can use the points which are really cash and go on any cruise I want or just spend the money elsewhere. If RCL gets more realistic and allows the points to go to any RCL or X cruise and makes the redemption process easier I would consider getting their charge card back.

[Bruin Steve]

The RCL card is a bad deal all the way around... I opened an MBNA card with 1% cash back ....

Actually, I've done the math...Assuming they work out the bugs in cashing in, it's a far better deal than a simple 1% cash back card...

 

First of all, from what I understand from people who've successfully used it, RCCL will allow you to use the award as a flat $2,500 credit against a balcony or suite costing more than the $2,500...So, one trick is to go ahead and book a cabin in excess of the $2,500 and pay whatever small difference...

 

That said, a $2,500 credit for spending $125,000 on the card equates to a FULL 2% award...

 

BUT, since there are bonuses involved---for start-up and for charges made with Royal Caribbean (double points)...and some other things as well, the actual cash back equivalent is in excess of 2%...I figure, when all is said and done, my award will be more in the 2.25 to 2.4% range...

 

Now, I don't use this card for gas purchases--because I have another card that gives me 5% for those...or for certain restaurants where my AAdvantage Master Card gives me 10X...

 

But, for example, the Monarch of the Seas cruise I just returned from? Cruise fare, shore excursions, bar bill, etc, all come out to the equivalent of 4%...

 

The only real gripe I have is that I'd rather use the $2,500 toward a Western Mediterranean cruise on the Navigator than toward (yet another) an uninspiring Caribbean cruise...You'd think RCCL makes out either way...and maybe better on the longer more expensive cruise...I mean, I'm willing to pay the difference...

[cruisePRN]

what you say makes sense but I get 2% on all dining and vacation so I really get an average of close to 2%. With the RCL card I don't want to do another Mexican or Carribean cruise so the points are worthless to me.